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New Product Introduction (NPI) – The Ultimate Guide

new product introduction

When you’re developing a physical product, the New Product Introduction (NPI) process can seem daunting.

But don’t worry – this guide will walk you through everything you need to know about NPI, from the management role to the various challenges you’ll likely face.

We’ll also discuss some best practices for a successful NPI. So whether you’re just starting out or you’ve already begun the NPI process, this guide is for you!

What is New Product Introduction (NPI)?

The New Product Introduction (NPI) process refers to a company’s steps to bring a new product to the market. This can be a new version of an existing product or an entirely new product.

The NPI process is important because it helps to ensure that the new product is high quality and meets customer demands.

It also helps to avoid any disruptions in the manufacturing process, which can lead to delays or even a complete halt in production.

The NPI process/steps

There are typically five steps in the NPI process:

What are the benefits of effective NPI?

There are many benefits of effective NPI, including:

Reduced risk of production delays or disruptions

By having a well-defined NPI process, you can avoid potential delays or disruptions in production. This is because all of the necessary steps will be clearly laid out, and everyone involved will know what needs to be done and when.

Improved communication

Good communication is essential for any manufacturing process, but it’s especially important during NPI. That’s because there are so many moving parts and so many people involved.

Lower costs

An efficient NPI process can help to lower the overall cost of manufacturing by reducing waste and rework.

Design and development
Testing and Validation
This is when you determine what the product will be and what resources you'll need to create it. At this stage, you'll also create a timeline for the project.This is when you actually create the product. You'll need to design it, source materials, and manufacture it according to your specifications.Before you launch the product, you'll need to test it to make sure it meets all quality standards. You may also want to get feedback from potential customers at this stage.Once the product is ready, you'll need to introduce it to the market and start selling it. This can be a complicated process, especially if you're introducing a new product category.Even after you've launched the product, your work isn't done. You'll need to monitor sales, track customer feedback, and continue to evolve the product over time.

Increased product quality

By following a set NPI process, you can help to ensure that your product is of the highest quality possible.

Improved customer satisfaction

By ensuring that your product is of the highest quality and is delivered on time, you can improve customer satisfaction and loyalty.

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Mechanical Engineer
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New Product Introduction (NPI) Management (whose role is it?)

The NPI process should be managed by a dedicated team or individual who has experience with bringing new products to market.

This person should have a good understanding of the manufacturing process and the supply chain and be able to communicate effectively with both internal and external stakeholders.

It is critical that there is clear communication between your NPI team and the other functions within the company, such as sales, marketing, customer service, and accounting.

Open communication and a clear chain of responsibility will help to ensure that the NPI process runs smoothly and that new products are introduced successfully.

Having a single person or dedicated team in charge of NPI also helps to ensure that new products are introduced in a timely and efficient manner.

New Product Introduction (NPI) challenges

One of the biggest generic challenges in the NPI process is managing all of the different stakeholders involved. Many people are often involved in developing a new product, from engineers to marketing managers to salespeople.

Keeping all the various stakeholders on the same page can be a challenge, especially as the product development process can often be lengthy and complex.

When it comes to the manufacturing industry, there are a few specific key challenges to keep in mind during the NPI process:

Managing inventory

First, there is the challenge of managing inventory. This is because you need to have enough raw materials on hand to meet production demands, but you also don’t want too much inventory that could become obsolete.

Managing lead times

Second, there is the challenge of managing lead times. This refers to the time it takes to receive materials and components from suppliers. You need to ensure that your suppliers can meet your lead time requirements while also keeping costs low.

Managing capacity

Lastly, there is the challenge of managing capacity. This means having enough manufacturing capacity to meet customer demand. You need to ensure that your manufacturing process is efficient and that you have enough trained staff to operate your machinery.

Overcoming these challenges is essential for a successful NPI and one way you can do that is by adopting effective best practices.

Best practices for New Product Introduction (NPI)

Now that we’ve gone over some of the challenges of NPI, let’s talk about best practices.

Create a cross-functional NPI team

One best practice is to create a cross-functional NPI team. This team should include representatives from all the departments that will be involved in the NPI process, such as engineering, procurement, and manufacturing.

Clearly define the roles and responsibilities

By clearly defining the roles and responsibilities of each team member, you can avoid confusion and conflict later on.

Make sure everyone knows what their job is and what they’re responsible for, and you’ll be on your way to a successful NPI.

Establish clear objectives and timelines

Another best practice is to establish clear objectives and timelines for the NPI project.

The objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). The timeline should be realistic and consider all the steps involved in the NPI process.

Create detailed plans for each stage of the process

It is critical that you create detailed plans for each stage of the NPI process. These plans should include who is responsible for each task, the deliverables, and when each task should be completed.

Establish realistic timelines for each stage of the process. This will help to keep the project on track and avoid any delays.

Communicate the plans and timelines to all stakeholders

Once the plans and timelines have been established, it is important to communicate them to all stakeholders. This will ensure that everyone is aware of their responsibilities and knows when each task should be completed.

It is vital that everyone is on the same page and that any concerns can be addressed in a timely manner.

Open communication will help avoid any surprises and keep the project on track, so it’s critical to establish clear lines of communication between all parties involved.

This includes both internal and external communication.

Track your progress

Finally, it is important to have a system to track progress and manage changes. This system should include regular project updates, status reports, and risk management plans.

Instituting KPIs that everyone is aware of and accountable for will help ensure that the project stays on track and meets its objectives.

Do extensive testing

Make sure to test your new product thoroughly before it is introduced to the market. This includes both quality assurance testing and customer feedback.

By doing this, you can be sure that the new product meets customer expectations and is of the highest quality.

Plan for the worst

Have a plan in place for potential issues that may arise. This will help to minimize the impact of any problems. Just hoping that nothing goes wrong is not a good strategy.

Be prepared for the long haul

NPI projects can take a long time to complete. Be prepared for this and have a plan in place for how to keep everyone on track. This includes regular project updates, status reports, and risk management plans.

Don’t neglect your post-launch

Once your product is launched, your work is not done. You need to have a plan in place for post-launch support and how to deal with any issues that come up. This includes warranty support, customer service, and product upgrades.

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Jerry S.
trustpilot Jiga
Mechanical Engineer
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Ensuring a successful launch

The New Product Introduction (NPI) process is vital for any company that wishes to introduce a new product to the market.

By following the best practices and steps listed above, and having a clear understanding of the process, you can ensure that your product launch is successful.

Using NPI principles can also save you time and money by helping you avoid common pitfalls associated with launching new products.

Adar Hay
Adar Hay
Co-Founder and CEO of Jiga. Adar is a tech industry revenue leader with vast experience in product and marketing management. He's driving Jiga's mission to make parts sourcing frictionless.

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